Guides

Underwrite like a lender, by strategy

Each guide covers the tests a lender or investor runs for one strategy, with the default bars the app uses and a worked example where there is a sample deal.

• Rental property analysis: the tests a lender runsHow to screen a buy-and-hold rental the way a bank or DSCR lender does: debt service coverage, cash flow per unit, debt yield, cash-on-cash and the price where it pencils.
• Multifamily underwriting in minutesScreen a value-add apartment deal with the gates an agency or bank lender uses: DSCR, debt yield, loan to value, break-even occupancy and operating expense per unit.
• Fix and flip analysis that counts every costScreen a flip on profit after every cost, margin on resale, return on cash and the 70% rule, with bridge interest, points, closing and selling costs included.
• BRRRR analysis: buy, rehab, rent, refinance, repeatScreen a BRRRR deal on what matters at the refinance: coverage on the new loan, cash flow after the refi and how much of your capital comes back out.
• A ground-up development proforma a lender will readTest a ground-up project on yield on cost over the exit cap rate, loan to cost, contingency, coverage on the permanent loan and profit over total cost.
• Land entitlement: what the approval is worthScreen an entitlement play on profit at approval, multiple on invested capital, residual land value, annualised return and the time to approval.